What factors drove the changes in Republic Services's revenue and profit?

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What does Republic Services do and what are its main business segments?

Did Republic Services beat or miss consensus estimates last quarter?

What guidance did Republic Services's management provide for the next earnings period?

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What is Republic Services's latest dividend and current dividend yield?

What is Republic Services's gross profit margin?

- **Strong Q3 Growth**: 3.3% revenue growth, 6.1% EBITDA expansion, and 80 basis point margin improvement highlight operational resilience.
- **Sustainability Momentum**: Polymer Centers and RNG projects driving long-term growth, with 137 EVs in fleet advancing electrification.
- **2026 Outlook**: Mid-single-digit revenue growth expected, with EBITDA and free cash flow growth outpacing revenue despite $100M non-recurring 2025 event-driven volumes.
- **ES Recovery**: Environmental Solutions demand stabilizing in Q3, with pipeline expansion signaling 2026 recovery from manufacturing softness.
- **Capital Allocation**: $1B+ in 2025 acquisitions, with strong M&A pipeline for balanced growth across Recycling & Waste and ES.

**【CEO Summary Section】**
- **Revenue Growth**: 3.3% year-over-year, driven by 4% yield on total revenue and disciplined pricing. Adjusted EBITDA grew 6.1%, with an 80 basis point margin expansion to 32.8%.
- **Customer Retention**: 94% retention rate, supported by strong service delivery and a 94% Net Promoter Score.
- **Volume Challenges**: Organic volume decreased 30 basis points due to softness in construction and manufacturing, offset by hurricane recovery and event-based landfill activity.
- **Sustainability Initiatives**: Polymer Centers in Indianapolis and Allentown (expected Q4 2025) and 6 RNG projects operational, contributing to free cash flow growth.
- **Capital Allocation**: $1B+ in acquisitions year-to-date, with a strong pipeline for 2026, balanced across Recycling & Waste and Environmental Solutions.

**【CFO Financial Commentary】**
- **Earnings**: Adjusted EPS of $1.90, up 12% YoY. Year-to-date free cash flow of $2.19B, supported by EBITDA growth and capital expenditure timing.
- **Event-Driven Volumes**: $100M in hurricane and wildfire cleanup revenue, contributing a 30 basis point margin benefit. Q3 landfill volumes included $35M from Carolinas hurricane recovery.
- **Cost Management**: 20 basis point margin improvement from operational efficiency, offset by 20 basis points from lower recycled commodity prices ($126/ton vs. $177/ton YoY).
- **Debt & Liquidity**: Total debt $13.4B, leverage ratio 2.5x, with $2.7B liquidity.

**【Q&A Highlights】**
- **2026 Outlook**: Mid-single-digit revenue growth expected, with EBITDA and free cash flow growth outpacing revenue. Headwinds include $100M non-recurring 2025 event-driven volumes and commodity price volatility.
- **Environmental Solutions (ES)**: Q3 revenue down $32M YoY due to manufacturing softness, but demand stabilizing in Q3. Pipeline expansion suggests recovery in 2026.
- **M&A Strategy**: Pipeline remains strong, with focus on small- to medium-sized deals in both Recycling & Waste and ES. 2025 acquisitions exceed $1B, with continued activity expected.
- **EV Adoption**: 137 EVs in fleet (150+ by year-end), supported by 32 facilities with commercial-scale charging infrastructure. Fleet electrification driven by customer demand and sustainability goals.
- **Commodity Pricing**: Recycling processing and commodity sales reduced organic growth by 20 basis points. Current commodity prices ~$120/ton, with no significant hedging strategies beyond fee-for-service models.

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